Why the Bears Are Wrong About The Scotts Miracle-Gro Stock

In mid-June home lawn and fertilizer care specialist The Scotts Miracle-Gro Company (NYSE: SMG) lowered its full-year fiscal 2017 outlook, citing a more than 10% drop in mass retail sales compared to the year-to-date checkpoint from the previous year. That was caused by challenging weather this spring in core markets across the United States.

The company lowered adjusted EPS to a range of $4.00 to $4.20, down from the original $4.10 to $4.30. Meanwhile, revenue growth was expected to top out at 4%, down from 7% at the high end of the original range. Investors wasted no time sending shares lower on the news, leading to the largest drop in stock price in three years.